Taxation logo taxation mission text

Since 1927 the leading authority on tax law, practice and administration

Readers forum: Tax translation

03 November 2020
Issue: 4767 / Categories: Forum & Feedback
VAT treatment on furniture bought and sold in the EU.

I act for a UK company but its director is resident in Spain. He is an interior designer and works in the UK and European Union countries. He recently bought a sofa in France and paid French VAT. He resold the sofa to a French business client and charged UK VAT. He made a similar purchase in Denmark again selling to a business customer in France. The amounts involved were about £15 000 plus VAT.

I advised the director that he should not have charged output VAT to the French company because the reverse charge would apply. He has since issued a credit note for this.

How does he reclaim the French and Danish VAT? Should the company be registered in France or Denmark?

His Spanish accountant suggests that he has to complete a form but I have heard that there may be a six-month time limit...

If you or your firm subscribes to Taxation.co.uk, please click the login box below:

If you are not a subscriber but are a registered user or have a free trial, please enter your details in the following boxes:

Alternatively, you can register free of charge to read a limited amount of subscriber content per month.
Once you have registered, you will receive an email directing you back to read this item in full.

Please reach out to customer services at +44 (0) 330 161 1234 or 'customer.services@lexisnexis.co.uk' for further assistance.

back to top icon